The USD 111 billion Tata Group just isn’t trying to monetise investments to boost capital and has sufficient money to help group companies, its Chairman N Chandrasekaran mentioned on Friday as he sought to scotch speculations in regards to the influence of the COVID-19 pandemic on the group’s enterprise.
The Board of Tata Sons, the holding firm of the salt-to-software conglomerate, met on Friday reportedly to guage and focus on methods to allocate funds to group corporations and prioritise sectors needing extra liquidity.
With out mentioning the board assembly, Tata Sons issued a press release to “dispel the current unfounded rumours” in regards to the group.
“The Tata group corporations, like all different corporations, are dealing with each challenges and alternatives arising out of the pandemic and ensuing financial scenario, based mostly on the industries and markets they function in,” Chandrasekaran mentioned within the assertion.
“All our group corporations are progressing nicely responding to those challenges and alternatives and we’re assured that they’ll emerge stronger,” he added.
Terming reviews on the influence of COVID-19 on the group as “malicious” and aspiring to undermine the efficiency of the Tata group and discredit the Chairman Emeritus Ratan N Tata, he mentioned the group is nicely poised to seize new alternatives.
“We’re targeted on navigating the present scenario and worthwhile progress,” he mentioned. “Tata Sons is in a robust monetary place with sufficient money flows to help the group corporations and new progress initiatives. Tata Sons just isn’t trying to monetise its investments to boost capital.”
Corporations throughout sectors have borne the brunt of the coronavirus pandemic and the nationwide lockdown imposed to curb its unfold. Sectors most impacted embrace hospitality, auto, aviation and shopper items. Tata Group is current in all of them.
Tata Metal and JLR have suffered essentially the most. Its flagship Tata Consultancy Companies (TCS) too has not remained untouched by the influence of the pandemic.
Since taking on as chairman of the group in February 2017, Chandrasekaran has elevated synergies throughout group corporations to finest leverage the power of the group.
It was speculated that the Tata Sons board could also be introduced with a method for progress in a post-COVID world by optimising prices. The assertion didn’t say something in regards to the deliberations of the board.
The group’s high administration has taken as much as 20 per cent wage lower for the primary time within the conglomerate’s historical past.
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